ALGM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Allegro MicroSystems Inc (ALGM) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock has strong analyst support, a bullish technical setup, and positive long-term growth prospects, despite recent insider selling and a decline in net income. The investor's long-term horizon aligns well with the company's projected growth in AI, robotics, and automotive sectors.
The stock exhibits a bullish trend with moving averages showing SMA_5 > SMA_20 > SMA_200. The MACD histogram is positive at 0.77, indicating upward momentum, and the RSI is at 72.475, which is neutral but nearing overbought territory. The stock is trading near its first resistance level (R1: 38.21) and has potential to test R2: 39.9.
Analysts have consistently raised price targets, with the latest consensus around $45-$51, citing strong growth in AI, robotics, and automotive sectors.
Revenue growth of 28.86% YoY in Q3
Gross margin improvement to 46.73%, up 2.34% YoY.
Positive sentiment from analyst day presentation highlighting mid-teens sales growth and 55% gross margins over 3-5 years.
Insiders are selling, with a 129.72% increase in selling activity over the last month.
Net income dropped significantly by -220.98% YoY, and EPS declined by -200.00% YoY in Q3
No recent news or congress trading data to provide additional support.
In Q3 2026, Allegro MicroSystems reported revenue of $229.21M, up 28.86% YoY, indicating strong top-line growth. However, net income dropped to $8.3M, down -220.98% YoY, and EPS fell to $0.04, down -200.00% YoY. Gross margin improved to 46.73%, up 2.34% YoY, reflecting operational efficiency gains.
Analysts are highly bullish on ALGM, with multiple firms raising price targets to $45-$51 and maintaining Buy or Overweight ratings. Analysts highlight the company's strong growth prospects in AI, robotics, and automotive sectors, as well as its ability to sustain gross margin expansion and revenue growth in the mid-teens.
